How To Draft And Negotiate AI Addendums With Confidence

In an article for Practising Law Institute (PLI), Managing Attorney Jana Gouchev explores how corporate legal teams are responding to the rapid integration of artificial intelligence into commercial contracts. She explains when AI addenda are necessary, which provisions matter most, and how legal teams can draft AI-specific terms that address data, regulatory, and governance risk.

Summary

Artificial intelligence now appears in many vendor, technology, and service agreements. Yet many contracts still fail to address AI-specific risk. When agreements involve AI-driven systems, model training on company data, or AI outputs that affect regulated or high-impact decisions, standard contract language falls short. A tailored AI addendum allows legal teams to address data use, model training, bias, errors, regulatory compliance, and governance directly.